Employer of record in Honduras: costs and rules
We may earn a commission when you sign up through some links on this page. Commissions never change our scores or the order of our lists. How we make money.
The employer contributions in our Honduras research are the IHSS pension charge (IVM) of 3.5% on pay up to a monthly ceiling (reported by El Heraldo, a secondary source), which was L 11,903.13 in 2025, and the 1.5% RAP housing fund contribution from the RAP's 2025 circular, so the share of a USD 40,000 salary taken by these lines is small because most of the pay sits above the ceilings; EOR fees run from $199 a month (Payoneer Workforce Management, formerly Skuad) to $699 (Oyster), checked October 2026. The rule US companies most often get wrong is the minimum wage: Honduras sets it by branch of activity and by the employer's headcount, from L 9,596.64 a month for a small farm employer to L 19,298.72 for a financial or business services firm with 151 or more workers.
An employer of record in Honduras is a Honduran company that employs your worker, registers them with the IHSS (Instituto Hondureno de Seguridad Social) and the RAP, pays the employer contributions and runs payroll in lempiras, while you direct the work.
- Currency
- HNL
On this page
Honduran pay floors and contribution ceilings
Minimum wage by sector and company size
Acuerdo SETRASS-233-2026, published in La Gaceta No. 37,129 on April 29, 2026, sets monthly minimum wages for an 8-hour day from January 1, 2026. For financial and business services, the band depends on the employer's size:
- 1 to 10 workers: L 13,654.55
- 11 to 50 workers: L 14,088.24
- 51 to 150 workers: L 16,922.16
- 151 or more workers: L 19,298.72
The lowest rate in the table is L 9,596.64 (agriculture, 1 to 10 workers). Under an EOR, ask which size band the provider applies, since it is the legal employer. Our reading of the official PDF matched branch names to figures by order, so check your hire's line in the table yourself.
Contributions in our research
- IHSS pension (IVM): 3.5% employer, 2.5% employee and 0.5% state, after Decreto 48-2024 raised IHSS rates from 2025 (secondary source: El Heraldo). The IVM ceiling was L 11,903.13 a month from January 2025, so the employer's IVM charge was at most L 416.61 a month (3.5% x 11,903.13).
- RAP housing fund: 1.5% employer on ordinary salary. RAP circular C-001/2025 also uses L 11,903.13 as its floor and cites a ceiling of three minimum salaries, L 54,108.57.
- Reserva Laboral (cobertura laboral): 4.0%, per the same RAP circular, which does not state how it is split between employer and employee.
We have not yet confirmed from an official source the 2026 IHSS and RAP ceilings, the IHSS sickness and maternity and professional risks rates, INFOP, the thirteenth and fourteenth month payments, vacation, probation, notice, severance (auxilio de cesantia) or working hours. Ask the EOR for each term in writing and check it with the IHSS, the RAP and the Ministry of Labor (SETRASS).
Employment costs and rules in Honduras
| Item | Honduras |
|---|---|
| What the employer pays | IHSS Invalidez, Vejez y Muerte (IVM) employer 3.5% to ceiling (secondary: El Heraldo on Decreto 48-2024); RAP housing fund employer 1.5% of ordinary salary; Reserva Laboral (cobertura laboral) 4.0% (RAP circular C-001/2025; employer share assumed but split not stated); IHSS Enfermedad y Maternidad, Riesgos Profesionales and INFOP rates not confirmed today |
| Caps and ceilings | 2025 values only (2026 values not confirmed): IVM and Enfermedad y Maternidad ceiling L 11,903.13 a month from Jan 2025 (up from L 11,336.32 and L 11,109.30 in 2024); RAP circular also uses L 11,903.13 as the contribution floor for RAP and cites a contribution ceiling of 3 minimum salaries = L 54,108.57 (highest 2025 minimum salary L 18,036.19) |
| Minimum wage | Monthly, 8-hour day, from 1 Jan 2026 (Acuerdo SETRASS-233-2026, La Gaceta No. 37,129 of 29 Apr 2026), by branch and company size: lowest L 9,596.64 (agriculture, 1-10 workers); highest L 19,298.72 (financial and business services, 151+ workers); e.g. financial and business services L 13,654.55 (1-10), 14,088.24 (11-50), 16,922.16 (51-150), 19,298.72 (151+) |
Checked October 17, 2026. Source type: mixed: official (2026 minimum wage table; RAP circular C-001/2025); secondary (IVM rates and ceilings: elheraldo.hn). Sources are listed at the end of this page.
What an EOR charges to employ someone in Honduras
| Provider | EOR fee per employee per month | Deposit | Entity model (provider claim) |
|---|---|---|---|
| Payoneer Workforce Management | from $199 | None listed | Claims owned entities across APAC, MEA, Europe and the Americas |
| Pebl | $399 | Not listed | About 90% of employees on Pebl-owned entities |
| Playroll | from $399 | One month's salary per employee, refundable | No clear owned-entity claim |
| Rivermate | $319 to $639 | Not stated | Claims 38 owned entities |
| Multiplier | $459 (annual) or $499 (monthly) | Sized from costs, fees and notice period (method published, no fixed amount) | Claims owned entities in 160+ countries |
| Rippling EOR | Quote only (third-party reference: $499) | Not listed | Claims Rippling entities; no partner mention |
| Deel | $599 | Not stated by Deel | Claims owned entities in 130+ countries |
| Remote | from $599 | Waived for startups; otherwise not stated | Claims 100% owned entities in 90+ countries |
| Atlas | from $599 | Not published | Claims owned entities in 160+ countries |
| Papaya Global | from $650 | Refundable deposit, amount not stated | Uses in-country partners |
| Oyster | $699 | At least one month of total service cost, refundable (per its terms) | Owned entities and partners |
| Globalization Partners (G-P) | Quote only | Not stated | Information page claims 100+ wholly owned entities |
Source: each provider’s pricing page, checked October 16, 2026. Fees are the provider’s charge on top of salary and the employer contributions above. Some providers adjust prices by country.
Pricing a Honduran hire with the data we have
We have no Banco Central de Honduras exchange rate on file, so we cannot convert USD 40,000 into lempiras or produce a full cost table. What the confirmed figures show: on a salary above the ceilings, the employer's IVM charge stays fixed at the cap (L 416.61 a month on the 2025 ceiling) however much the person earns, so the statutory share of a USD 40,000 salary is small. The formula is each employer rate times the lower of monthly salary and that line's 2026 ceiling, divided by monthly salary.
The EOR fee is the line you can price exactly: $7,188 a year at $599 (Deel, Remote), $4,788 at $399 (Pebl, Playroll) and $8,388 at $699 (Oyster), all list prices checked October 2026. Add a deposit (under Oyster's terms, at least one month of total service cost, Playroll one month's salary). Countries with complete figures are in the EOR cost index and the international hiring cost calculator.
Which EOR to use in Honduras
Our published scores place Multiplier at 79/100 and Oyster at 64, with Remote 62, Playroll 60, Pebl 57 and Deel 54 behind them (how we score). No provider publishes a Honduras fee. Ask for a quote listing every IHSS, RAP and other line with the 2026 ceilings it uses, the minimum wage band it applies, and whether it employs through its own entity. Compare the EOR ranking and our Deel, Remote and Oyster reviews.
Honduran contractors
Paying a Honduran contractor by invoice avoids IHSS, RAP and the EOR fee. A full-time role under your direction can be treated as employment, bringing back contributions and Labor Code payments. Compare contractor management tools or a contractor of record.
Setting up in Honduras yourself
At $599 a month, each EOR hire is $7,188 a year in fees. A Honduran company means IHSS and RAP registration and local payroll, and its own headcount decides the minimum wage band. See EOR versus entity and the EOR fee comparison.
Frequently asked questions
What is the minimum wage in Honduras in 2026?
What does an employer pay to the IHSS in Honduras?
What is the RAP contribution in Honduras?
How much does an employer of record cost in Honduras?
Sources (10)
- Pebl: Pebl EOR pricing (checked Oct 16, 2026)
- Playroll: Playroll pricing (checked Oct 16, 2026)
- Multiplier: Multiplier pricing (checked Oct 16, 2026)
- Deel: Deel pricing (checked Oct 16, 2026)
- Remote: Remote pricing (checked Oct 16, 2026)
- Oyster: Oyster pricing (checked Oct 16, 2026)
- Payoneer Workforce Management (formerly Skuad): Skuad pricing (checked Oct 16, 2026)
- Oyster: Oyster terms of service (EOR deposit) (checked Oct 16, 2026)
- trabajo.gob.hn/wp-content/uploads/2026/05/TABLA-SALARIO-MINIMO-2026... (checked October 17, 2026)
- rap.hn/wp-content/uploads/2025/01/COMUNICADO-TECHOS-Y-PORCENTAJES-2... (checked October 17, 2026)
This page is general information, not tax, legal or accounting advice. Rules and rates change, so check the official source linked above before you file or sign a contract. Read our disclaimer.